Exhibit CCG-3, Page 1 WRITTEN DIRECT TESTIMONY of AUSTIN WONG 2010-2013 Cable Royalty Distribution Proceeding Docket No. 14-CRB
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Electronically Filed Exhibit 4008 (CCG Wong Direct), Page 1 Docket: 14-CRB-0010-CD (2010-2013) Docket No. 14-CRB-0010-CD Filing Date: 02/12/2018 06:37:01 PM EST WRITTEN DIRECT TESTIMONY OF AUSTIN WONG 2010‐2013 Cable Royalty Distribution Proceeding Docket No. 14‐CRB‐0010‐CD (2010‐2013) 1. INTRODUCTION Professional Experience My name is Austin Wong of Toronto, Ontario. I was called to the Ontario Bar in 1998, and have been an entertainment lawyer since 1999. I have worked at media companies such as Alliance Atlantis, Lionsgate Films, Rhombus Media, and I am now Director of Legal & Business Affairs for DHX Media. I was also a producer of the feature film This Movie is Broken, and was Associate Producer for such feature films as Fernando Meirelles' Blindness, starring Julianne Moore and Mark Ruffalo. I have specialized in entertainment law throughout my entire career, handing all legal aspects of development, financing, production and distribution. Responsibilities at DHX Media Since 2011, I have served as Director, Legal & Business Affairs for DHX Media. I am involved in many different TV and film projects at all different stages, from development to production and distribution. My responsibilities include: • drafting and/or negotiating all production agreements for television productions, including all talent and key creative agreements, music licenses, clearances, and insurance documentation, broadcaster agreements, and bank financing agreements (such as credit facility offer letters and security documentation); • advising on union issues, including Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), Directors Guild of Canada (DGC), Writers Guild of Canada (WGC); • preparing and negotiating acquisition and co‐development agreements for new properties to be added to our development slate; Exhibit CCG‐3, Page 1 Exhibit 4008 (CCG Wong Direct), Page 2 Docket No. 14-CRB-0010-CD • reviewing and making notes on development creative materials for clearance and insurance purposes; • overseeing applications to funding agencies such as Telefilm, Canada Media Fund (CMF), Harold Greenberg Fund, and Rogers Cable Fund; • ensuring compliance with Telefilm Canada’s policies for international treaty co‐ productions; • advising on internet issues, including YouTube content identification, management and user‐generated‐content issues; • handling all legal issues relating to music, both synch and merchandising uses and distribution of audio only content; • liaising with external counsel on miscellaneous legal issues, such as litigation. 2. ABOUT DHX MEDIA LTD. DHX Media Ltd. (“DHX,” “DHX Media,” or the “Company”) was formed in 2006 by the merger of Decode Entertainment and the Halifax Film Company. The DHX moniker abbreviates “Decode Halifax.” In 2012, DHX acquired Cookie Jar Entertainment, owners of popular kid shows as Caillou, Johnny Test, Inspector Gadget and The Doodlebops. The $111 million deal added nearly 6,000 half‐hour episodes to the library of 2,550 episodes which DHX already owned, giving the company ownership of a vast independent library of kids and family content. Its number of half‐ hours has since grown to more than 11,800. In 2013, DHX became a broadcaster as well, with a $170 million acquisition of four kids‐focused channels: Family, Disney Junior (English and French) and Disney XD. DHX re‐branded Disney Junior English to Family Jr. and Disney Jr. French to Télémagino and Disney XD to Family Chrgd. In 2014, the Company paid $33 million for Epitome Pictures, producer of the long‐running Degrassi television property and owner of a 100,000‐square‐foot Toronto studio facility. The teen‐drama series premiered in 1979, and has become a Canadian television institution, remaining on‐air in different versions since its premiere, and continuing today as Degrassi: Next Class, which is in its second season on DHX’s Family Channel F2N teen block, with Netflix picking up worldwide SVOD rights. Exhibit CCG‐3, Page 2 Exhibit 4008 (CCG Wong Direct), Page 3 Docket No. 14-CRB-0010-CD Headquartered in Canada, DHX has offices in 15 cities globally, and is listed on the Toronto Stock Exchange (DHX.A and DHX.B) and the NASDAQ Global Select Market (DHXM). Leveraging a library of more than 11,800 half‐hours of content, the Company’s distribution arm, DHX Distribution, is a leading provider of content to major broadcasters, streaming platforms, on‐ demand services, and home entertainment companies worldwide. With a team of eight sales executives in Toronto, Los Angeles, Paris and Beijing, and a Toronto‐based support team dedicated to providing the best in client services, digital services and library services, DHX Distribution is a key provider of children’s content to the global market. Exhibit CCG‐3‐A (Our Pedigree) illustrates the progression of DHX over the last ten years. DHX boasts such internationally recognized brands as Teletubbies, Yo Gabba Gabba!, Caillou, In the Night Garden, Inspector Gadget, Make It Pop, Slugterra and the multiple award‐winning Degrassi franchise. As a content producer and owner of intellectual property, DHX delivers shows that children love, licensing its content to major broadcasters and streaming services worldwide. Exhibit CCG‐3‐B (Our Brands) provides a graphic image of many of these brands and notes some of their recent successes. DHX has always been a force in both production and distribution, ensuring that its proprietary content is given the maximum global exposure. But it also services other company’s animated shows, including My Little Pony: Friendship Is Magic, Transformers: Rescue Bots and Littlest Pet Shop for Hasbro Studios and The Mr. Peabody & Sherman Show for DreamWorks Animation. DHX’s robust consumer products program generates royalties from merchandise based on its much‐loved children’s brands. Exhibit CCG‐3‐C (Our Customers) shows where we license our productions. DHX has licensed programming in many countries across six continents. 3. A SELECTION OF DHX PRODUCED OR DISTRIBUTED SHOWS THAT WERE BROADCAST IN CANADA The following are descriptions of some DHX produced or distributed shows that were broadcast on Canadian over‐the‐air stations (between 2010 and 2013), and retransmitted in the United States: Exhibit CCG‐3, Page 3 Exhibit 4008 (CCG Wong Direct), Page 4 Docket No. 14-CRB-0010-CD Animal Mechanicals – animated series for children Animal Mechanicals is produced by DHX Media and broadcast on CBC Television Canada in the Kids' CBC programming block. It was also broadcast in the United Kingdom on the Playhouse Disney channel, Discovery Kids Latin America, and TG4 in Ireland. Bo On The GO! – animated series for children Bo On The GO! is produced by DHX Media and broadcast in Canada on CBC Television in the Kids' CBC programming block. It is currently broadcast on 17 broadcasters around the world, in over 12 languages, including Spanish, French, Italian, Greek, Arabic, Thai, Finnish, Hebrew, Portuguese, Turkish and Gaelic. Busytown Mysteries – animated series for children Busytown Mysteries, also known as Hurray for Huckle!, is a Canadian animated television series created by DHX Media. Currently the series airs in Canada as part of the Kids' CBC block and used to air on Tiny Pop channel in the UK and in the United States as part of the Cookie Jar TV block on CBS. Busytown was the Domestic Animated Television Series Music Award winner in 2010 at the SOCAN awards. Dirtgirlworld – animated series for children Dirtgirlworld, is an Australian‐Canadian co‐produced children's television series. The show was co‐produced by Mememe Productions (Australia) and DHX Media (Canada). It was commissioned by CBeebies, the Canadian Broadcasting Corporation (CBC) and the Australian Broadcasting Corporation (ABC). Dirtgirlworld received the Interactive Production of the Year Award at the 2013 Screen Producers Australia Awards. The Doodlebops– live action series for children The Doodlebops is a Canadian television series. The series aired on CBC in Canada in the Kids' CBC morning broadcast programming schedule, on Playhouse Disney (UK) and Tiny Pop in the UK, and on Starz Kids & Family in the USA. Guard, The – live action series for adults The Guard is a live action drama about four Coast Guard members stationed at Port Hallet, trying to juggle their personal and professional lives. Action‐packed and full of drama, this series illustrates the hazards the men and women of the Coast Guard face every day. Lassie – live action series for children Lassie is a Canadian television series which is a modified remake of the original Lassie series (1954–1973) about a boy and his faithful dog. Exhibit CCG‐3, Page 4 Exhibit 4008 (CCG Wong Direct), Page 5 Docket No. 14-CRB-0010-CD Magi‐Nation – animated series for children Magi‐Nation is a Canadian‐Korean animated television series based on the card game Magi Nation Duel. The series was co‐produced by Daewon Media and DHX Media, in association with CBC Television Canada. Margaret’s Museum – live action film for adults Margaret's Museum is a critically acclaimed 1995 British‐Canadian dark film drama, directed by Mort Ransen and based on Sheldon Currie's novel The Glace Bay Miners' Museum. Mighty Jungle, The – live action puppet series for children The Mighty Jungle is a puppet series for preschoolers created by Jeff Rosen and Jason Hopley. It is produced by DHX Media in association with CBC Television. The program is broadcast in Canada on CBC Television, and in the United States on Sprout. Monster Math Squad – animated series for children Monster Math Squad is a Canadian CGI animated series, created by Jeff Rosen and produced by DHX Media for CBC Television. Monster Math Squad is broadcast internationally on JimJam Poland, HOP! Channel Israel, Discovery Latin America, and Netflix. Monster Math Squad was nominated for a Canadian Screen Award in 2013. Pirates: Adventures in Art – animated series for children Pirates: Adventures in Art is a Canadian animated children's television show produced by DHX Media.